Fdr Outlaws Gold Ownership

Price tag Of Gold & Gold Pricing In March 2010 | Gold Prices Today

The day price of gold is driven by supply and demand. Because most of the gold ever mined still exists and is potentially able to come on to the market for the rightprice, unlike most other commodities, the hoarding and disposal plays a much bigger role in affecting the price. At the end of 2006, it was estimated that all the gold ever mined totaled 158,000 tons. Given the huge quantity of stored gold, compared to the annual production, the price of gold is mainly affected by changes in sentiment, rather than changes in annual production. In times of national crisis, people fear that their assets may be seized and that the currency may become worthless. They see gold as a solid asset, which will always buy food or transportation. Thus in times of great uncertainty,particularly when war is feared, the demand for gold rises.When dollars were ully convertible into gold, both were regarded as money.  However, most people preferred to carry around paper banknotes rather than the somewhat heavier and less divisible gold coins. If people feared their bank would fail, a bank run might have been the result. This is what happened in the USA during the Great Depression of the 1930s, leading President Roosevelt to impose a national emergency and to outlaw the ownership of gold by US citizens. One explanation for the increase in today’s gold price is that it is adjusting for the past 26 years of monetary inflation. The consequences of the adjustment in the gold price will be a decrease in American’s net worth and an increase in their food and energy costs.

In 1950, the gold price was .72 and the gold standard gold price was .77. In 1971 gold price was allowed to float against the US dollar, it naturally increased. The reason for the increase was the gold price was adjusting for the 30 years of monetary inflation created by the Federal Reserve Bank.

Gold is the most popular precious metal in which people invest. It is a safe-haven agaainst any economic, political, social or currency-based crises, such as: investment market declines, currency failure, inflation, war and social unrest. Gold is unlike a bond. Gold pays no interest. But, Gold cannot become worthless like a bond can. The values of both rise and fall in free market trading. Gold is also not a stock.Gold has no employees, no unions, pays no health insurance, has no overpaid CEO, no need to borrow money from a bank, and is recession-proof. Gold simply sits there in your vault quietly doing its job. You can see why for the average stock broker or financial advisor, Gold remains a total mystery. Sadly for their clients, stock brokers seldom recommend investing in Gold or Silver. Despite the remarkable year-over-year gains they continue to ignore the gains being generated during the current bull market. Throughout history gold has often been used as money and, instead of quoting the gold price, all other commodities were measured in gold.

FDR

Gold, the once and future money

FDR, the first hundred days

The FDR years, on Roosevelt and his legacy

Gold